According to The Business Research Company’s Fats And Oils Global Market Report 2023, during the forecast period, the increase in demand from health-conscious consumers will drive the fats and oils market. Demand for healthier foods is driving demand for fats and oils, particularly those with specific flavours and dietary benefits. Processing of specialty oils in ways that preserve their flavor and nutrients has become more sophisticated in recent years. For example, according to a report by Avendus Capital, the investment banking arm of Avendus Group, in 2020, health-focused foods and beverages were 11% of the $88 billion packaged foods and beverages market in India. This share is expected to move up to 16% or $30 billion by 2026. Meanwhile, the number of health-conscious consumers is expected to rise to 176 million in 2026 from 108 million in 2020. Therefore, the increase in demand from health-conscious consumers will support the growth of the market.
As per the fats and oils market report, the global fats and oils market will grow from $181.6 billion in 2022 to $195.6 billion in 2023 at a compound annual growth rate (CAGR) of more than 7%. The fats and oils market is then expected to grow to $251.3 billion in 2027 at a CAGR of more than 6%.
The global fats and oils market is fairly fragmented, with a number of players in the market. Bunge Limited was the largest competitor with 5.6% of the market, followed by Wilmar International Limited, Archer Daniels Midland Company (ADM), Mewah International Inc., AAK AB, Cargill, Incorporated, The Nisshin Oillio Group, Musim Mas Group, Fuji Oil Co. Ltd and Associated British Foods PLC.
Companies in the specialty fats and oils market are focusing on novel fat technologies to accelerate customer innovation of plant-based foods. In addition, adopting other sustainable options is a key market trend of the fats and oils industry. For example, in March 2023, Cargill, a US-based food corporation, and CUBIQ Foods, a Spain-based food tech company, collaborated to develop and commercialize innovative fat technologies. With this partnership, Cargill will have access to CUBIQ’s innovative technologies to help customers develop plant-based alternative foods with benefits that surpass typical products made with animal fats or tropical oils, such as enhanced flavor, improved total fats and saturated fats, improved caloric content and incorporated essential fatty acids.
Furthermore, in April 2023, CSM Ingredients, a Luxembourg-based manufacturer and distributor of bakery ingredients, inaugurated a new Innovation Center dedicated to fats, oils and emulsifiers, in Delmenhorst, Germany. The company aims to focus on uncovering the segment’s new sustainable frontiers through research on microbial oils, enzyme technology and new plant-based solutions.
As per the fats and oils market analysis, Asia Pacific was the largest region in the fats and oils market, accounting for 52.1% of the total in 2022. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the fats and oils market will be Africa, and, South America.
The fats and oils market report describes and explains the market and covers 2017 to 2022, termed the historic period, and 2022 to 2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.
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